AD Depreciation
The formula for calculating ADS Straight-Line MACRS is:
|
Acquired Value Estimated Life |
= |
Annual Depreciation |
The AD depreciation method uses the half-year averaging convention for personal property and the midmonth convention for real property.
Here is an example:
|
Acquired Value: |
$10,000 |
|
Placed-in-Service Date: |
11/01/2018 |
|
Estimated Life: |
10 |
|
Salvage Value: |
$1,000 |
Year 1:
|
$10,000 10 |
X |
1 2 |
= |
$500 |
Years 2 through 10:
|
$10,000 10 |
= |
$1,000 |
Year 11:
|
$10,000 10 |
X |
1 2 |
= |
$500 |